What the Proposed Capital Improvements Reserve Levy Would Do — and What It Would Cost Oskaloosa Property Owners
Oskaloosa, Iowa – The Oskaloosa City Council is considering a resolution to place a capital improvements reserve levy on the November 4, 2025, city/school election ballot. If approved by voters, the city could levy up to $0.675 per $1,000 of taxable value each year, beginning July 1, 2026, to fund equipment and capital projects identified in the city’s Capital Improvement Plan (CIP).
Staff recommends approving the resolution calling the special city election and transmitting it to the Mahaska County Auditor by September 19, 2025, so it appears on the November ballot. The measure would be a continuing levy until repealed by voters at a future election.
Under Iowa Code §384.7, a city may establish a capital improvements reserve fund with a voter-approved levy not to exceed $0.675 per $1,000 of taxable value. Voters approve (1) establishing the fund, (2) the period the levy will be made, and (3) the tax rate. If a continuing levy is established, it can later be terminated by council motion or petition, or election.
Why is the city proposing it? The staff memo cites declining property-tax revenues relative to growing costs, noting the need to maintain and equip departments and to continue infrastructure improvements for streets, parks, library, and other public places. The levy is intended to provide a stable, voter-authorized revenue stream for capital items.
How much revenue and when? If voters approve, collections would start FY2027 (taxes levied July 1, 2026). Staff estimates an average per-capita amount of $24.16 based on a current population of 11,558; election administration costs (if added to the November ballot) are budgeted up to $8,000 in FY2026.
What would it cost a property owner? The rate ceiling is $0.675 per $1,000 of taxable value.
Per $100,000 of taxable value, the levy equals $67.50 per year.
Per $200,000 of taxable value, the levy equals $135.00 per year.
Note: “Taxable value” reflects state rollback and may be lower than assessed value.
How funds could be used. The city’s current CIP identifies capital equipment and projects across departments that the levy could support, alongside existing sources such as the general fund, road-use tax, franchise fees, hotel/motel tax, LOST, grants, library funds, donations, and bond funds. For FY2026, the city lists $5,258,424 in CIP funding across all sources (excluding the natatorium and enterprise funds).
Examples from the CIP (non-exhaustive):
Police: Vehicle replacements, in-car and office computers, and service-weapon replacements, with FY2026–FY2030 requests totaling $700,000.
Fire: A pumper/tanker replacement in FY2026 ($730,513) plus gear, hose/nozzles, and equipment, totaling $904,114 over FY2026–FY2030.
Street Equipment: Replacement of heavy equipment and trucks (e.g., sweeper cost-share, rollers, chip spreader, loaders), totaling $3,924,411 over FY2026–FY2030.
Pavement Improvements: A combination of annual maintenance/preservation and specific corridors in outer years.
How long does it last, and how can it be changed? The ballot language proposes a continuing levy at up to $0.675 per $1,000 “until repealed.” Under §384.7, a continuing levy may be terminated later by council motion or by petition and election.
What’s next? Upon council approval of the calling resolution, the measure would be placed on the November 4, 2025, ballot. If approved by voters, the levy would first appear on tax bills for FY2027, with project and equipment priorities determined during the city’s regular budget study sessions.
